Dairy Farmers of America Board Applauds DEIP Allocations

Allocations Will Improve Export Market Opportunities for U.S. Dairy Farmers

May 22, 2009

Kansas City, Mo. - The Board and management of Dairy Farmers of America, Inc. (DFA) commend Agriculture Secretary Tom Vilsack for his role in activating significant dairy export allocations under the U.S. Department of Agriculture’s Dairy Export Incentive Program (DEIP).

DEIP complies with World Trade Organization regulations and is a cost-effective way to export limited quantities of cheese, nonfat dry milk and butter, and to help bolster dairy prices. Based on a formula established by National Milk Producers Federation, full usage of the DEIP allocations announced today will remove more than 1.5 billion pounds of milk from the U.S. market – equivalent to the average annual milk production of more than 72,400 cows.

As a farmer-owned milk marketing cooperative with nearly 18,000 members, DFA takes an active role in shaping agriculture policy, and has strongly encouraged Congress to urge the administration to use their administrative authority to activate DEIP.

“Secretary Vilsack has proven himself to be a true advocate for agriculture and the dairy industry,” said Tom Camerlo, chairman of the DFA Board of Directors. “It is refreshing and encouraging to see government leaders taking action and utilizing available resources to strengthen dairy farmers’ market opportunities during these troubled times.”

According to a press release from the U.S. Department of Agriculture, the DEIP allocations for July 2008 through June 2009 are as follows: 68,201 metric tons of nonfat dry milk; 21,097 metric tons of butterfat; 3,030 metric tons of various cheeses and 34 metric tons of other dairy products. These, as well as individual product and country allocations, will be made available through Invitations for Offers. Country and region quantities may be limited by the invitation.